Fitch Rates EXIM#s USD Senior Notes #BBB+(EXP)#

Fitch Ratings has assigned an expected rating of 'BBB+(EXP)' to Export-Import Bank of Thailand's (EXIM, BBB+/Stable) five-year senior unsecured notes of up to USD300 million. The notes will be issued under the bank's USD1.5 billion medium-term note (MTN) programme. EXIM plans to use the proceeds to fund its asset growth and for general corporate purposes.

The final rating is contingent upon the receipt of final documents conforming to information already received. The issuance will be listed in Singapore.

KEY RATING DRIVERS

Fitch rates the proposed senior notes at the same level as EXIM's Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'BBB+', as they will constitute the bank's unsecured and unsubordinated obligations.

EXIM's ratings are equalised with the Thai sovereign's Long-Term Foreign-Currency IDR, and reflect Fitch's belief that the government would provide extraordinary support to the bank. EXIM is a state policy bank established under specific legislation, and wholly owned by the Thai Ministry of Finance, which controls the bank's management and strategy.

RATING SENSITIVITIES

The rating of the proposed senior unsecured notes would be directly affected by any changes in EXIM's Long-Term Foreign-Currency IDR, which in turn would be sensitive to changes in Thailand's sovereign rating. EXIM's rating could also be downgraded if the sovereign's propensity to support the bank were to weaken. This may happen if the state were to reduce its shareholding significantly or if the bank changes its legal status. However, Fitch deems such events as unlikely in the medium term.

For further details on EXIM's key rating drivers and sensitivities, refer to the rating action commentary Fitch Affirms Five Thai State Policy Banks, dated 13 November 2018.

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